UFU Comments on Dairy Processors Profits
NORTHERN IRELAND, UK - The Ulster Farmers’ Union has commented on the profit levels reported by United Dairy Farmers. UFU Dairy Policy Chairman William Cromie said United had made a healthy profit but there was a need for profits to be passed back to producers who have endured a sustained period of losses.
16 October 2009
2 minute read
William Cromie said, “The dairy sector has been in crisis for a considerable period of time with producers supplying milk at well below the cost of production; a completely unsustainable situation. It is good to see dairy processors in profit because we need a stable dairy sector with strong and secure processors to purchase milk from the farm gate. But it is also a priority to secure the future of primary producers of milk and on many farms the serious losses incurred have put their future in dairying at risk. It is our view that processors and retailers should be making every effort to maximise the cash flows to producers so that we don’t lose our milk production base in Northern Ireland. In the case of United Dairy Farmers, they have generated a healthy profit and we would urge them to ensure these profits are channelled to their producers to boost their cash flow."
The UFU also commented that with world commodity markets for dairy products improving and currency very much in the industry’s favour, they were optimistic that farm gate milk prices should continue to rise.
Mr Cromie said, “We are optimistic that this weeks milk auction will return another improved price for milk and once again we would re-iterate our call to processors to maximise the returns to producers who have been enduring severe losses. We will also continue to progress our UFU Dairy Sector Roadmap."
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